,China

Haidilao to slow growth as COVID-19 subdues consumer appetite

China’s biggest hot pot chain embarked on an expansion drive in early 2020 that resulted in an almost-1,600 store network.

Haidilao said it is slowing its rollout of new restaurants and increasing diversification in order to cope with a subsequent slump in consumer spending due to COVID-19.

“We will open stores based on market demand, and compared to before, will appropriately slow down our opening pace,” the company told Reuters.

China’s biggest hot pot chain embarked on an expansion drive in early 2020 that resulted in an almost-1,600 store network by acquiring sites left behind by vacating tenants.

But that expansion reportedly pushed Haidilao’s table turnover rate down to 3.0, or three sets of customers per day on average, - in the first half of this year, from 2019’s 4.8.

Read the full report here.

Join QSR Media Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Lim Hee Liat and Chia Cher Khiang stepped down from their roles in the company after they were charged under Singapore’s Securities and Futures Act.
It previously announced it will be shutting down or suspending the operations of around 300 restaurants.
The owners of the Wagas business are seeking a valuation of US$800 million to US$1 billion or more.
The chain also launched its own ready-to-eat items under its own brand 7-SELECT.
It is also getting a majority stake in the firm that owns bubble tea chain Milksha.
Over eight neighbourhoods will be catered for by the new site.
The partnership will help Zomoz scale to more than 300 retail and cloud outlets pan India over the next 30 months.
Affected employees would be redeployed within the group.
The American seafood chain has 21 locations in Singapore.